RFI No. Sol 72062424RFI00003 MuniWASH 2 Activity.pdf

RFI Number: Sol: 72062424RFI00003 Issuance Date: August 1, 2024 Response Due Date and Time: August 30, 2024, 1700 hours, Accra time Response email address: rtawonezvi@usaid.gov and vhollosy@usaid.gov

Dear Prospective Partners:

Pursuant to FAR 52.215-3 “Request for Information (RFI),” the United States Government through the West Africa Regional Mission (USAID/West Africa or USAID/WA) is seeking information for a potential activity to support the Municipal Water, Sanitation and Hygiene Follow-on (MuniWASH 2) Activity in Côte d'Ivoire and Benin.

Through this RFI, USAID/West Africa aims to gather information to help improve financial viability and sustainability; technical and operational performance; sanitation market expansion; governance and management oversight; and regional learning with regards to the Water, Sanitation, and Hygiene (WASH) sector in the two countries.

This RFI is issued solely for information and planning purposes and does not constitute a Request for Proposal (RFP), a Request for Quotation (RFQ), an Invitation for Bids (IFB), or any other type of solicitation. Responses to this RFI are not proposals and will in no way be deemed to form any binding agreement with the RFI issuing authority. Not responding to this request does not preclude participation in future solicitation, if such is issued. It should also be noted that responding to this RFI will not give any advantage to any organization in any subsequent procurement.

Responses to this RFI will not be returned, and respondents will not be notified of the result of the review. There will be no debrief or evaluation letter to responders. USAID posts its competitive business opportunities on www.sam.gov or www.grants.gov. It is the potential applicant’s or offeror’s responsibility to monitor the site for the release of any further information.

This RFI does not restrict the Government’s approach on a future solicitation. Information from this RFI may lead to one-on-one market research discussions and other recommended approaches to industry engagement.

Interested parties wishing to respond to this request must submit their response via email, in Microsoft Word or Adobe Acrobat formats are acceptable. Please email responses to: Viktoria Stott Hollosy at vhollosy@usaid.gov and to Ruby Tawonezvi at rtawonezvi@usaid.gov no later mailto:rtawonezvi@usaid.gov mailto:vhollosy@usaid.gov http://www.sam.gov/ http://www.grants.gov/ mailto:vhollosy@usaid.gov mailto:rtawonezvi@usaid.gov than the closing date as referenced above. Please reference the subject title “Organization’s Name, Response to RFI No 72062424RFI00003.”

PLEASE NOTE THAT USAID WILL ONLY REVIEW RESPONSES DIRECTLY RELATED TO THIS RFI

AND RESPONDING TO THE QUESTIONS AND AREAS SPECIFIED BELOW. ANY PROMOTIONAL

MATERIAL, RESUMES, OR FUNDING REQUESTS OF ANY KIND WILL NOT BE OPENED AND

REVIEWED. PLEASE DO NOT SUBMIT SUCH COMMUNICATION IN RESPONSE TO THIS NOTICE.

Thank you for your interest in partnering with USAID to deliver development technical assistance.

Sincerely

Viktoria Stott Hollosy Contracting Officer

I. Response Guidelines and Requirements:

Cover page, not to exceed one (1) page, that includes:

1) Organization name and address.

2) Size and type of organization, including if applicable U.S. business or other socioeconomic status.

3) Geographic Scope: Where does your organization have geographic experience and expertise?

4) A brief statement of interest that indicates the organization’s interest in applying.

5) Optional: If a team or consortium is envisioned, please provide the names of other potential partner organizations.

6) Point of contact name, phone number, and email address.

7) If you have a Unique Entity Identifier (UEI) issued by the U. S. government, please enter it here. UEI IS NOT REQUIRED TO RESPOND TO THIS RFI.

II. Background In West Africa, governments face significant challenges when provisioning basic Water Sanitation and Hygiene (WASH) and livelihood services for the well-being of their citizens. Population growth and high rates of rural-urban migration are overwhelming tight operational budgets and the ability of national and subnational governance institutions to cope. Inadequate planning and infrastructure investment, without the support of robust institutions, has created overcrowding, poor living conditions and increased inequality. For poor and underserved communities, WASH coverage is limited or absent. Building density in informal settlements exposes residents to unsanitary environments. Climate change, including flooding and excessive heat, compounds health risks from poor sanitation and limited WASH infrastructure. Furthermore, small towns are often overlooked, and the capacity of municipal and local governments to provide WASH services is low or not adapted to the needs of these communities. For example, while Côte d'Ivoire is considered a low-middle-income country, it ranks 166 of 188 countries in the 2021 Human Development Index. More than 60% of the Ivorian population has no reliable access to safe drinking water, and around 80% of the rural population lacks access to basic sanitation, particularly in the north. In Benin, while progress has been made with around 65% of Beninois having access to basic water as of 2020, only 17% of the population has access to basic sanitation, and open defecation is practiced by more than half of the population. The northern regions of both countries experience higher than average levels of poverty and socioeconomic isolation due to harsher arid climatic conditions that result in poor agricultural productivity, lack of infrastructure and services including roads, schools, healthcare, and access to markets, and historical and ongoing vulnerability to conflict and climate change.

To address these urban challenges, the USAID Municipal Water, Sanitation and Hygiene (MuniWASH

1) supported municipal governments, national directorates and agencies, utilities, and service providers to improve, expand and sustain equitable access to safe drinking water and basic sanitation services for the population, especially in urban and peri-urban areas in Côte d'Ivoire and Benin. MuniWASH 1 improved the governance and management capacity of 16 municipalities;

supported the development of a sanitation market for low-income communities, increasing pro-poor services; provided improved sanitation facilities to more than 63,000 people; mobilized $2,845,773 in new funding for the water and sanitation sectors; and strengthened 82 sanitation enterprises in targeted municipalities. Regardless of these results, cities and municipalities in Benin and Côte d'Ivoire still struggle to accelerate service delivery while meeting Sustainable Development Goal targets for quality, accessibility, and availability. Building on MuniWASH 1 achievements, the West Africa Municipal Water, Sanitation, and Hygiene Follow-on (MuniWASH 2) Activity will address these key challenges by enhancing the effectiveness of those interventions, expanding the number of municipalities, businesses and households supported, and creating a sustainable multiplier effect in Côte d'Ivoire and Benin.

III. Opportunity and Development Hypothesis The link between urbanization and climate change, pollution, and socioeconomic inequality all pose challenges to achieving sustainable and equitable WASH access. However, urbanization also expands the customer base and revenue potential for WASH service providers. Effective strategic planning of urbanization and resource utilization is essential to address these challenges. Urban areas are pivotal to economic growth and development due to their proximity to central and municipal governments, their economies of scale, and the access to information and infrastructure which urban areas afford.

Additionally, urban areas tend to foster greater political and economic participation and subsequent enhancements to governance. The potential for scaling the impact of basic services like water and sanitation is not only present in large central cities, but also in growing secondary and tertiary cities and towns that are making important contributions to national wealth and productivity.

A. Theory of Change IF demand, ability to pay, and supply for inclusive, sustainable and climate-resilient sanitation are improved;

And IF municipal management capacity and governance to support sustainability and equity are enhanced, critical policies and regulations enforced, and a collaboration framework among stakeholders in the WASH sector are in place;

And IF investment in WASH from the public and private sectors is increased;

And IF learning and knowledge sharing to replicate successful approaches strengthened;

THEN city-wide safely managed WASH services will expand, sustain and reach poor and underserved communities.

B. Goal MuniWASH 2 will improve financial viability and sustainability of private enterprises in the WASH sector and technical and operational performance among private and public actors. The activity will also improve sanitation market expansion, governance and management oversight, and regional learning. MuniWASH 2 will recognize that the institutional frameworks for WASH in Benin and Côte d'Ivoire are complex and adopt different approaches in those contexts, as needed. USAID recognizes the importance of working with multiple government agencies, ranging from national to state levels, and with multiple public and private service providers to improve coordination, augment enabling environments, and help municipalities become more effective coordinators to achieve shared goals and build mutual accountability.

Advancing urban WASH service delivery in West Africa requires improvements among both private and public actors. With increasing privatization of the water and sanitation sectors, and official reforms within Benin, MuniWASH 2 will support the capacity and performance of government and private enterprises to support this effort. The activity will support national and subnational governments to establish and implement effective regulatory frameworks, financial incentives, and operational standards to strengthen the enabling environment for private sector engagement and investment. In parallel, the activity will support private enterprises to leverage community engagement, innovation, partnerships and financing to develop cost-effective and scalable products and services that cater to the needs of underserved communities.

The activity will also coordinate with other USAID activities and implementing partners to enhance governance for a resilient and inclusive drinking water supply chain for the underserved populations, with an emphasis on the northern regions of Benin and Côte d'Ivoire. It will also advance strategic approaches that will have a multiplier effect across the countries engaged and the West Africa region more broadly.

IV. Objectives MuniWASH 2 has four main objectives:

1. Ensure effective sector coordination, with policy and regulatory frameworks in place and strengthened governance and regulatory capacity;

2. Improve demand, ability to pay, and supply for inclusive, sustainable and climate-resilient sanitation;

3. Increase investment in WASH from the public and private sectors; and

4. Increase local, national and regional learning and knowledge sharing to learn from and replicate successful approaches.

V. Objective 1: Ensure effective sector coordination, policy and regulatory frameworks in place and strengthen governance capacity

Context To catalyze the critical role of the private sector for increasing water and sanitation access, MuniWASH 2 will support national government agencies and municipalities to create a favorable enabling environment for private sector engagement and investment. This requires supportive policy and regulatory frameworks that spread risks and benefits of building up this nascent market, and that incentivize private sector entities to participate. In Benin, the activity will support the country’s sanitation1 and drinking water2 reforms that license private companies to deliver and manage WASH 3 services. These reforms present opportunities to develop and enhance coordination between public and private stakeholders. While Benin’s ambitious rural water sector reform aimed to professionalize service delivery across rural Benin, it has resulted in service reductions in certain areas due to changes in management responsibilities that reduced the engagement of rural municipalities. Stakeholder consultations revealed significant and widespread dissatisfaction with the shortcomings of the collaboration between the rural communes and the Rural Water Agency in implementing the reform, notably the limited role of the communes in resolving issues related to small infrastructures. Repairs of old and neglected infrastructure have not taken place in many cases, and the number of non-functioning water points is constantly increasing, reducing access to multi-purpose water for the rural population in Benin.

1 https://blogs.worldbank.org/en/water/transforming-sanitation-benin-tale-resilience-and-renewal 2 https://blogs.worldbank.org/en/water/ambitious-reforms-and-private-sector-engagement-improve-access-water-benin 3 https://www.jumelages-partenariats.com/en/actualites.php?n=15457&art=Benin/Signing_of_three_(03)_contracts_for_the_leasin g_of_hydraulic_works_for_drinking_water_supply_in_rural_areas https://blogs.worldbank.org/en/water/transforming-sanitation-benin-tale-resilience-and-renewal https://blogs.worldbank.org/en/water/ambitious-reforms-and-private-sector-engagement-improve-access-water-benin https://blogs.worldbank.org/en/water/ambitious-reforms-and-private-sector-engagement-improve-access-water-benin https://www.jumelages-partenariats.com/en/actualites.php?n=15457&art=Benin/Signing_of_three_(03)_contracts_for_the_leasing_of_hydraulic_works_for_drinking_water_supply_in_rural_areas https://www.jumelages-partenariats.com/en/actualites.php?n=15457&art=Benin/Signing_of_three_(03)_contracts_for_the_leasing_of_hydraulic_works_for_drinking_water_supply_in_rural_areas https://www.jumelages-partenariats.com/en/actualites.php?n=15457&art=Benin/Signing_of_three_(03)_contracts_for_the_leasing_of_hydraulic_works_for_drinking_water_supply_in_rural_areas

This objective will also build on key governance capacity-building efforts. This included a series of Institutional Strengthening Index (ISI) assessments conducted by MuniWASH 1, which resulted in municipal Institutional Strengthening Plans (ISP) that municipalities have begun to implement. For example, to address ineffective implementation monitoring, MuniWASH 1 worked with municipalities to implement corrective measures by setting up monitoring committees within the municipalities and plans for organizing biannual reviews. ISI assessments conducted annually showed improvements in ISI scores for all municipalities engaged in Benin and Côte d'Ivoire. Additionally, MuniWASH 1 supported the Social Audit Commission in Bouaké, Côte d'Ivoire to conduct a WASH services assessment report which highlighted a number of WASH service deficiencies. Authorities committed to a series of improvements, including the replacement of damaged water pipes, to increase local water supply production to 80,000 cubic meters (m3)/day and took a two-pronged approach to fecal sludge management both building a second treatment plant as well as promoting mechanical emptying of fecal sludge.

MuniWASH 1 also developed strong relationships with national water institutions, especially Benin's national water utility, SONEB. It will be important to sustain and scale these interventions, with MuniWASH 2 focusing on alignment with Benin’s national government and continued relationship-building with Côte d'Ivoire’s Water Distribution Company, SODECI.

Beyond coordination among national and municipal WASH governance institutions, there is a need to improve sector-wide coordination and information sharing. International donors and nongovernmental organizations (NGOs) have expressed an interest in public sector-led, multi-stakeholder platforms to coordinate investments and interventions. While Benin has a new national sanitation strategy, municipal, community-level and private sector participation has been limited.

Côte d'Ivoire does not have a strategy. There are opportunities to leverage local and national initiatives to improve stakeholder engagement across the WASH sector.

Anticipated Outcomes To strengthen WASH sector governance and management capacity, activities under this objective will attain the following outcomes:

1. Relevant policy, regulations, and frameworks assessed, appropriate strategic reform plans established and implemented;

2. Accountability and coordination improved by the establishment and effective function of a collaboration framework and systems between municipalities, water agencies and appropriate WASH stakeholders, including in the northern regions.

3. Capacity of commune administration increased, especially in the North, to ensure adequate management and monitoring of existing water infrastructures in their localities.

4. Capacity of municipal governments increased in the areas of planning and budgeting, implementation and monitoring;

VI. Objective 2: Increase access to inclusive safely managed drinking water and sanitation services

Context MuniWASH 2 will focus on building an inclusive market that helps the region fill gaps in access to water and sanitation services. Current barriers that this activity should address include: low affordability of products and services, limited access among households and small and medium-sized enterprises (SME) to financing, limited policy incentives for PSE, and inadequate data on service coverage and analytics for effectively reaching underserved populations.

Governments institutions in Benin and Côte d'Ivoire often struggle to prioritize and allocate sufficient resources for water and sanitation services, leading to under-investment and service deficiencies, including the maintenance and climate resilient quality assurance of WASH infrastructure. The supply chain is also highly fragmented, challenging continuity of service. All this contributes to low demand for sanitation products and services among underserved communities. Most of the existing water infrastructure in the northern parts of Benin and Côte d'Ivoire is not functional, and there is a lack of required materials available to repair them because of supply chain challenges, further contributing to the challenges communities face when trying to access WASH services. MuniWASH 2 seeks to improve inclusive access to water and sanitation services through a multi-pronged, multi-stakeholder approach that enhances policy support, financial incentives, capacity building, and collaboration while improving the performance of service providers and effectively reaching more businesses and households in Benin and Côte d'Ivoire, and having a multiplier effect.

To increase access to inclusive safely managed drinking water and sanitation services, activities under this objective will ensure that:

1. Policy and regulatory frameworks incentivize investment in inclusive water and sanitation products and services that enable greater access among underserved populations;

2. Viable SMEs expand access and quality of water and sanitation services to underserved populations; and

3. The sanitation sector innovates to develop locally appropriate and climate-resilient sanitation products and services that better meet the needs of underserved populations;

4. The water product and service supply chains support the northern areas as well, while promoting locally-led solutions for sustainable water service.

VII. Objective 3: Improve financial sustainability and public and private sector investment

Context The intricate relationship between inadequate funding, poor service quality, and limited revenue in water and sanitation services has far-reaching implications, particularly for the most vulnerable populations. Insufficient funding for water and sanitation services affects the quality of services provided directly. Overburdened and under-resourced water and sanitation service providers struggle to meet the demands of their communities, leading to longer wait times, limited access to essential services, and compromised service delivery. This poor service quality, in turn, discourages user payments, further exacerbating the financial constraints of water and sanitation systems. When users experience subpar services or face insurmountable barriers to accessing services, they are less likely to make regular payments or seek services altogether. This decline in revenue streams further limits the resources available for investment in water and sanitation infrastructure, equipment, and personnel, perpetuating the cycle of inadequate funding and poor service quality.

Governments in West Africa often struggle to prioritize and allocate sufficient resources for water and sanitation, leading to under-investment and service deficiencies. Many water utilities do not apply commercial management approaches, suffer limited ability to modify tariffs, and lack efficient billing and collection systems, resulting in insufficient revenue to cover operational costs and reinvest in infrastructure. Water and sanitation businesses are not experienced in attracting customers and have poor access to credit, especially for many that operate in the informal sector. Access to credit and capital is also limited for households, particularly with regard to WASH improvements. Insufficient data on service coverage, financial performance, and user needs makes it difficult to target investments effectively and build trust with stakeholders. Private investment in water and sanitation remains low due to perceived risks, complex regulatory environments, ill-defined policies, and limited financial instruments tailored to the sector.

To achieve improved financial sustainability and public and private sector investment, activities under this objective will:

1. Increase public and private finance invested in WASH in targeted regions;

2. Strengthen public financing and accountability systems; and

3. Improve equity and expand services to the poor and vulnerable.

VIII. Objective 4: Increase regional learning and knowledge sharing

Context West Africa has a limited number of organizations with the mandate or resources to improve learning and knowledge management effectively. Many individual development partners, service providers, governments, and others have limited resources to document and share their own activities adequately or take on the burdens of coordination. This leaves many valuable experiences undocumented and unshared, leading to repeated challenges and slow progress. However, there is a strong interest among many stakeholders to engage and learn from each other.

To achieve increased regional learning and knowledge sharing, activities under this objective should aim towards the following outcomes:

1. Increased documentation, research, and sharing of learning in and among municipalities, between countries and stakeholders in the region; and

2. Increased sustainable platforms and/or partnerships established or strengthened to facilitate learning.

IX. Geographic Focus The Activity will be undertaken in target cities in Benin and Côte d'Ivoire. In addition, other places of performance may include Guinea and Togo. These bilateral missions or limited presence countries will be eligible to buy-in to MuniWASH 2.

X. Request for Information Questions

Respondents are kindly invited to respond to any or all of the questions at their discretion. They are also allowed to provide Benin-specific and/or Côte d'Ivoire (CDI)-specific responses without addressing the other countries in the region. Additional analysis for Togo and Guinea are also desired if funding permits.

USAID is specifically interested in feedback and comments on the following questions. To allow for USAID/West Africa to review all responses, we ask respondents to keep answers concise (bullets and/or narratives are acceptable). Please note the following:

● Review all provided material and provide feedback on the questions presented in this RFI

● Responses should not exceed eight (8) pages

● Submitted responses should be in English

● All responses are voluntary, and it is not a requirement for submissions to respond to all questions

Program objectives-related questions:

1. Is the theory of change clear and complete? If not please provide any additional considerations.

2. What are the most promising and sustainable approaches to improve SMEs business operations and performance in CDI and Benin? Are other interventions necessary for this to succeed?

3. What types of initiatives could increase customer demand and ensure the viability of the supply chain for sanitation and water products and services in Benin and CDI?

4. What strategies could USAID deploy to encourage and support respectively public and private sector WASH investment for Benin and CDI more effectively? What partnerships are needed to improve WASH financing in the two countries?

5. What are the most promising and sustainable approaches to address affordability of sanitation products to households in CDI and Benin?

6. How can USAID build on and institutionalize the success of Institutional Strengthening Index (ISI) assessments as a framework for strengthening municipal WASH service governance and performance, especially with regard to improving the sanitation value chain?

7. What is the best approach to support Benin’s transition to private sector service provision in the urban and peri-urban areas? What capacity development or partnerships USAID should focus on?

8. What aspects of this activity would best support water and sanitation service provision in the northern arid areas of Côte d'Ivoire and Benin?